U.S. Dollar Remains Lower Ahead of Fed

The dollar held a decline from yesterday against 10 major peers, its biggest in three months, as traders weighed whether the Federal Open Market Committee will alter the language in its policy statement today.

Australia’s currency weakened amid doubts a liquidity infusion yesterday by the People’s Bank of China signals a monetary policy shift in the South Pacific nation’s biggest trading partner. New Zealand’s currency fell after Westpac Banking Corp said Fonterra Cooperative Group Ltd., the world’s largest dairy exporter, will cut its milk payment forecast. The pound remained stronger before the release today of minutes from the Bank of England’s last meeting and a referendum on Scottish independence tomorrow.

“Traders are reluctant to buy or sell the dollar until they see the FOMC outcome,” said Etsuko Yamashita, chief economist at Sumitomo Mitsui Banking Corp. in New York. “The market is on guard as there is no consensus view on how the statement will change.”

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